UNISON vows to step up fight against wholly owned subsidiaries

Health members in Brighton today voiced their anger at the increasing practice of NHS trusts in England to set up wholly owned subsidiary companies to provide support services, and voted to fight their spread.

The practice is widely regarded as backdoor privatisation of health services – putting at risk the pay and conditions of thousands of NHS staff, particularly low-paid women, Black and disabled workers.

The importance of the issue was reflected in the fact that nine bodies contributed to the the composite motion being debated.

One delegate argued that wholly owned subsidiary companies represented “the biggest threat of privatisation seen in a generation.”

Trusts are exploiting a loophole in UK tax law to establish the new companies, arguing that the move will allow them to save money on VAT. While these companies are owned by the trusts, they are no longer part of the NHS and NHS staff are seeing their jobs outsourced to limited companies.

UNISON is particularly concerned that most NHS trusts that have set up these companies have introduced non-Agenda for Change contracts for new starters, while denying them access to the NHS pension scheme.

Adrian O’Malley of the service group executive told delegates: “This is yet another attack on lowest-paid staff. Another way of privatising services. Another way to bring in a two-tier workforce.

“We have to send a message to any managers considering setting up these companies that we are 100% part of the NHS and will fight to remain so,” he said. “We have got to stop this blatant attack on our terms and conditions.”

Mr O’Malley added that in his region of Yorkshire and Humberside wholly owned subsidiaries was “taking off with a vengeance”, with seven or eight trusts, including his own, considering setting them up.

But the union is combating these moves with the threat of taking industrial action, he added.

“While they are considering business cases, we are preparing our members for strike ballots. We have a right to strike to keep our NHS status.”

Jean Boswell, of Sheffield community health branch, told delegates: “We’re concerned about how fast this is moving.

“This is a direct attack on lowest-paid members of staff, moving them away from Agenda for Change and introducing a two-tier system.

“We do believe that this use of wholly owned subsidiaries is entirely cosmetic and won’t improve efficiency or productivity. But it will exploit future staff. And low-paid workers are first on the front line with diminishing terms and conditions.

“We know we have a fight on our hands, but working together we can resist.”

Delegates agreed to:

continue to support regions and branches in campaigning against the establishment of wholly owned subsidiaries – and to prioritise this work in the coming year;

encourage branches and regions to work together to resist the spread of these schemes;

safeguard the interests of the union’s members threatened by the creation and existence of such companies;

work with the Labour Party to reform the tax loophole;

campaign for all members who work for such subsidiaries to be employed on NHS terms and conditions, including access to the pension scheme;

continue to be vigilant against employers in Wales, Scotland and Northern Ireland exploiting the same loophole.

While UNISON will deal with the new companies if necessary, the conference said that “everyone working for the NHS should be employed by the NHS” and that the union would campaign for their return to direct NHS employment at the earliest opportunity.

Post navigation

More on this

The NHS continues to face unprecedented financial pressures. Some trusts in England are seeking to save money by creating wholly owned subsidiary companies to deliver services, including facilities and estates. What are wholly owned subsidiaries? A wholly owned subsidiary is an organisation set up at arm’s length but still owned by the trust. It means […]

The NHS is facing serious threats. Services and jobs are threatened with some employers using the economy as an excuse to attack staff pay, terms and conditions. We believe patients come before money. Find out how UNISON is campaigning to make sure the NHS is safe for patients and staff.

We think public services should be run for people, not for profit. Privatisation costs more, damages crucial services and drives down the terms and conditions of those providing them. Find out how UNISON is campaigning against the privatisation of local services and how you can help.

Nearly half a million UNISON members work in health care in the NHS and for organisations providing NHS services. We work to improve terms and conditions, highlight issues that will affect all workers, ensure workplaces are safe and challenge discrimination.

Current campaigns

The most important resource for the NHS is its staff – nurses, midwives and allied health professionals. But the government has scrapped NHS bursaries in England for these student healthcare professionals and replaced them with tuition fees and loans from August 2017.

Mental health services across the UK are struggling as a result of chronic underfunding and increased demand. This is having a negative effect on people who use these services and on the health and wellbeing of the staff who provide them. UNISON is the largest union in the NHS and we believe there should be […]

In September we announced that the NHS Staff Council had agreed to publish a new Band 6 paramedic profile along with technical guidance from JEG to help local matching panels evaluate their current paramedic roles. It has taken a little longer than hoped, but we are very pleased to welcome the publication of the profile […]

Related events

The seminar provides an opportunity for BAOT/UNISON stewards from both health and local government to come together to discuss key employment relations and professional issues. The seminar will include presentations and practical workshops designed to assist OT stewards in their trade union role. It will also enable stewards to network in their regional groups. Seminar […]